The recently passed US Dodd Frank Act (and proposed European Mifid II regulations) look set to shift a considerable volume of pre-trade OTC derivatives activity on to regulated electronic trading venues. This shift increases the complexity of the market structure by introducing newly regulated trading venues such as Swap Execution Facilities (SEFs) and Organised Trading Facilities (OTFs) and poses the question of how market participants can quickly and efficiently connect their trading platforms to this new breed of execution venues.
This white paper looks at the existing industry initiative to create common connectivity standards for trading OTC derivatives and explains how to leverage these initiatives for designing the flexible trading platforms required to connect to the newly emerging execution venues.